More details about the Zune HD and Zune/Xbox Live integration

I had a talk with Microsoft regarding the Zune HD yesterday, after publishing my Zune HD Preview article. Here's what I learned.

Why now?

The real purpose of this week's Zune HD and Zune/Xbox Live integration announcement was to prime the gaming world for next week's E3 announcements. These announcements have nothing to do with the Zune HD, however. In fact, all Microsoft is going to talk about next week is Zune integration with Xbox Live. The Zune HD stuff was just thrown in because there's been a lot of speculation about the upcoming device which, as I noted previously, is slated for a September 5 release. (Microsoft did not officially confirm this date, however.)

"We wanted to clear the decks for E3," Microsoft group product marketing manager Brian Seitz told me. "Otherwise people would be confused why we were talking about Zune at E3. This just puts context around the strategy we're working towards."

What is Microsoft doing around Zune/Xbox Live integration

This first wave of Zune/Xbox Live integration is about video content only (i.e. not music). That is, a new "Zune" link will replace the Video Marketplace link in the Xbox New Experience (NXE) UI that you see on the console today. "We have been looking at ways to integrate with other businesses within Microsoft," Seitz said. "Xbox is a natural first step. When you look at the ways people use the console beyond video games, video is the most popular. And we can add value there. We're looking at ways to see how the content can flow more easily between the Zune and Xbox services than it does currently."

Microsoft told me that Microsoft would show off "new capabilities" of the Zune video service on Xbox Live next week. "This isn't just a new name," Seitz said. This change will also form the basis for future expansions of the Zune brand and service onto other Microsoft platforms. (Presumably including Windows Mobile.)

"Zune is growing," Seitz said. "It's a complete software + services layer. Zune is about music and videos. On the Xbox next week, we'll talk about Zune in the context of the Xbox Video Marketplace. We're making huge improvements to the navigation and the look and feel. We will also discuss other cool features and capabilities that the service will have."

Zune HD

Seitz confirmed to me that the Zune HD is a complete touch-based device, with no Zune Pad or other button-based navigation. "There are a total of three buttons on the thing," he said. "On the front, near the bottom, is a silver button that takes you back to the home menu. There's a rocker on the upper left that you can use for volume up and down and to trigger onscreen transport [Play, Pause, Next, etc.] controls. And there's a power button on the top. That's it."

While much has been made of the fact that Zune HD is "based on Windows CE," that's been true of every Zune device so far. "It's not a departure or change, hardware-wise," he said. "It's always been there, and this is consistent."

The Zune HD web browser is based on a "flavor" of Internet Explorer 6, Seitz said, "but you won't recognize that. We did heavy, heavy customization work on the UI, and it's optimized for multi-touch, gestures, and finger-based navigation instead of a stylus."

Looking ahead, Microsoft is still finalizing the software capabilities, so we can expect more about the Zune HD later this summer. "We haven't discussed all the capabilities of this device yet, and we're still in the middle of development work," Seitz told me. "There are changes to come, but we want to be respectful of customers and be accurate with what we're releasing. We'll have more to say later this summer."

Zune PC software and services

Seitz did confirm for me that the Zune HD would be accompanied by a new revision of the Zune PC software and services. "Absolutely," he agreed. "There's a parallel effort for the software and we have some really cool stuff coming there too."

Final thoughts

"We're really excited about the first broadening of the Zune services beyond what it is today," he said. "Most people have never even seen a Zune, and if they have, they tend to think of the first brown one. We think we offer unique customer value across the board, but MP3 players and music services are vertical markets. We're excited to bring to bring Zune to more platforms in the company and expand its reach. They can benefit from the work we've done around content and experiences. We will continue to work with Xbox and other teams in the company to see where we can land next."

Discuss this Article 29

"Xbox New Experience (NXE)"
Sorry Paul, but you get a FAIL for acronyms.
"It's a complete software + services layer. Zune is about music and videos. On the Xbox next week, we'll talk about Zune in the context of the Xbox Video Marketplace"
Do those experiences include user-created content? Also, will this eventually replace Soapbox?
"The real purpose of this week's Zune HD and Zune/Xbox Live integration announcement was to prime the gaming world for next week's E3 announcements. These announcements have nothing to do with the Zune HD"
That's kind of smart, considering the the initial launch of the Zune HD will be targeting the US only. There are how many Xbox users worldwide though?

they really shouldn't be mentioning IE6 here. Regardless of whether the 'IE6' in use here is at all related to the desktop 'IE6' or the winmo 'IE6' is irrelevant -- they don't need that association one bit.

Why does all this stuff feel "Too little, too late?" Shouldn't all of this have been done much earlier in the Xbox's life? We're already expecting Xbox 720 in 2012. Considering how well "Plays For Sure," URGE digital service, and MSN Music worked in the past, how can you trust Microsoft with a music store? So far they're 0 for 2 in music services and 0 -1 with music platform services.
Right now, iTunes has been the clear winner here. How do we know that any of these integrations will last to the Xbox 720 or whatever the heck Microsoft calls it? The fact that Microsoft has such a lousy reputation with music services and Zune really hasn't made a significant dent.
This is part of that Microsoft "Me Too" obsession. I just think when it comes to any with a music service with a Microsoft name next to it, that should be your first sign to be cautious.

Paul,
It appears that MS is using Apple's iPod roadmap in trying to take the video market. Back in 2001 people were accumulating digital music on their HDDs (via ripping and Napster), but only had scrawny mp3 players to use. Apple offered the first piece of hardware that made it CONVENIENT to actually take these songs with you.
I think the same is happening now with video. People are ripping DVDs and exchanging video on bittorrent, but have real problems taking this content on vacation, to friends' houses. This is analogous to the era of 32MB mp3 players.
With ZuneHD's HDMI OUT feature, one will be able to take true HD video to a friends house, beach vacation...whatever and enjoy this content (obtained legally or illegally) wherever they want.
Add in support for watching cable channel content recorded on Media Center (fingers crossed), and you have a revolution for video.
BTW, I think you and Leo are missing the point on subscription music. That service is all about hearing what you want to hear any time. Pandora and Last.fm cannot offer that, as they dictate the playlist. Subscriptions and music services are all-too-often confused in their purpose. One important feature of the ZuneHD is that one can stream music from a 7M song jukebox on-demand with a wifi connection. Apple users cannot do this, and are strapped to their same old mp3s.

"Why does all this stuff feel "Too little, too late?" Shouldn't all of this have been done much earlier in the Xbox's life?"
You're right. But I still think this is the best chance for the Zune - to make the software and marketplace available on multiple devices like WM7 phones, XBoxes, PCs, and the player itself.
I don't know if HD radio is a killer feature, but I think a true gaming device like the fabled "xYz" would have been a better idea than to copy Apple. I like the iTouch and own one, but I really feel it would have been better if it had two more buttons, maybe to control the media player. Microsoft has gone and copied what I think is the worst feature in the iTouch. It worked for Apple. I doubt it will for MS.

"No they didn't."
Apple did release and market the most wide-spread device that made it convenient. Like it or not...that is a fact. I use a Zune because I like the Zune Pass. Others don't find the subscription model meets their needs. That's OK...that is what makes us individuals. Deal with it!
--tayme

@Waethorn - I wasn't arguing that Apple was first...in fact, I realize that. Like I said, I use and prefer Zune. I have used iTunes on Windows and it is a bit clunky at best. On OS X, though...it is not. I wouldn't mind seeing Microsoft develop the Zune software for OS X, though. Like I have said over and over..."best" is in the eyes of the user. That is different for each person, as it should be.
--tayme

"I wasn't arguing that Apple was first...in fact, I realize that."
I guess it depends on how you look at the context of your original statement. Convenient to cart around lots of songs, sometimes hundreds or thousands of them? For hardware, sure. Every MP3 player is the same in that respect though. Apple wasn't first there. Diamond Multimedia was the first that was sold in any kind of quantity but it still wasn't the first consumer MP3 player sold either even though most people remember them the earliest - the MPMan was. Creative created the first hard drive player that introduced the concept of having an entire CD library on a device, categorized by MP3 meta info instead of just by filename. Apple wasn't first there either. The software sure doesn't make anything convenient about it though, surely not for the mass adoption portion of it.
No, Apple can only be attributed with two successes in the MP3 player business: marketing and marketshare.
The operative words in your statement are "most wide-spread". That's about it.

Waethorn - I am by no means an Apple fan, all I meant is that the original iPod, IIRC, was groundbreaking in that its storage was so massive, one could put all of their songs on it.
At that point we had some nice devices, but they didn't have capacity, which was really the game-changing aspect. If Microsoft can integrate Zune/XBox/Media Center into one giant cooperative ecosystem, then they would absolutely dominate - this device is one of the real keys.

@Waethorn
not to mention the original iPod was mac only and had a very very limited market until they put out the first windows version. I don't think until the iPod hit the windows market did I ever see one in anyone's hands ever.

Waethorn,
"No, Apple can only be attributed with two successes in the MP3 player business: marketing and marketshare."
Baloney and you know it. They've defined the category with everything from the first iPod to the current iPhone. Everyone else is still playing catch up about a lap back. The Zune HD---still months from release---is trying to get where Apple was 2 device updates back with the original Touch.
And, it wasn't just the large storage capacity in the original iPod that made it a success, it was iTunes and the firewire for synching. At that time, everyone else was using dog-slow USB (not USB 2) and the speed of firewire for synch was just amazing. Actually better than the now ubiquitous USB 2, but that is the unfortunate lowest common denominator.

"They've defined the category with everything from the first iPod"
That's the kind of hogwash I'd expect from losta. The iPod was a virtual unknown until it came to Windows, and even then, it wasn't even a player until Apple intro'ed iTunes with a music store.
" it was iTunes and the firewire for synching"
When the iPod was released for PC, it was USB 2.0, not Firewire that drove adoption, sorry to say.
And Apple wasn't the first to offer it either.
"Actually better than the now ubiquitous USB 2, but that is the unfortunate lowest common denominator."
Ya that's why Apple dropped it on the Macbook.

"If Microsoft can integrate Zune/XBox/Media Center into one giant cooperative ecosystem, then they would absolutely dominate"
Never happen. MS just cant see things like that. A few examples, Mesh, and Play for Sure. WTF is going on with Mesh?
My Xbox 360 is the worst piece of electronic gear I have ever owned in my life. After my second RROD, I quit my Live subscription last August, my kids play 3-4 games on it and it streams Netflix. I just found PlayOn the other day and its streams Netflix to my PS3 in the basement. When that 360 goes, I will get another PS3.

I like the new design. It looks different from the iPod with its angles, and the large text-based main menu. Nice. If they continue to develop the features that make it unique (subscription music, wifi syncing, FM radio, etc) and with the right integration with XBox Live Marketplace, it might actually get some traction.
I do wonder how the integration with the XBox will work however. With the iPod/iTunes/Apple TV everything is centered around the PC. Are you going to have to hook up your Zune to your PC (even if its wirelessly) to transfer a video from your XBox to your Zune? If not how is this going to work. Can you just connect your Zune to your XBox directly? Does it transcode video?
Questions, lots of questions.
This do need to take some giant strides forward though. The part where they're just doing video for now, and not music or photos? Sorry, fail. They are BEHIND. There can't be giant gaping holes in their comparison with the iPod ecosystem.

@gorath, fanfoot:
Why would media need to be transcoded??
If the Zune can play a certain bitrate, the Xbox certainly should too.
If you mean "re-encoded", that's different, but doesn't the Xbox already support all the formats that the Zune does? I thought they added MPEG-4/H.264 support to the 360 already. Neither device supports Divx/Xvid so that's not even an argument either.